The graph and table below show that where rates start to be high, final interest rates are still quite high: a 36% reduction of 150% leaves a 96% end rate in Grade 6. It is only when the starting rates are low that the final rates have fares close to the Swiss formula (as in the example): if the rates start at 10% and 25%, the annual rates are 6.4% and 16%. The range of final tariffs from 6.4% to 96% remains very varied. The figure of 36% is used in the Uruguay cycle, although the Uruguay Round approach may use different figures. However, for industrialized countries, this was an average reduction of 36% in tariffs over six years, with a separate average target of 24% above the reference value for developing countries. The members concerned are not always satisfied with the WTO`s actions. In 2002, for example, the Bush administration imposed a three-year tariff on imported steel. In deciding to oppose these rights, the WTO allowed the affected nations to impose counter-rights on certain politically sensitive American products, such as Florida oranges, Texan grapefruits and computers and Wisconsin cheese. Reluctantly, the administration lifted its tariff on steel. See William F. Buckley, “W.T.O. at Bat,” Uexpress, www.townhall.com/opinion/columns/wfbuckley/2003/12/06/160423.html (called May 25, 2006); Matthew Benjamin, “Steeling for a Trade Battle,” E.S.
News – World Report, November 24, 2003, www.usnews.com/usnews/biztech/articles/031124/24trade.htm (called May 25, 2006). Headquartered in Geneva, Switzerland, with nearly 150 members, the World Trade Organization (WTO), an international organization that oversees trade policy and its members, works together to enforce trade rules and resolve trade disputes. promotes global trade and the removal of trade barriers, enforces international trade rules and provides a forum for dispute resolution. It has, for example, the power to determine whether a Member State`s trade policy has violated the organisation`s rules and can order “guilty” countries to remove controversial barriers (although it does not have the legal power to compel a country to do something it does not want to do). If the culprit refuses to comply, the WTO may authorize the applicant to create its own barriers to trade, usually in the form of tariffs. For many countries, unilateral reforms are the only effective way to reduce barriers to internal trade. However, multilateral and bilateral approaches – removing trade barriers in coordination with other countries – have two advantages over unilateral approaches. First, the economic benefits of international trade will be strengthened and strengthened if many countries or regions agree to remove trade barriers. By expanding markets, concerted trade liberalization enhances competition and specialization between countries, increasing efficiency and consumer incomes.
However, these advantages must be offset by a disadvantage: by excluding some countries, these agreements can transfer the composition of trade from low-cost countries that are not parties to the agreement to high-cost countries that are.